Reconciliation
National Real Estate Exam glossary · Valuation
Definition
The appraiser's final step of weighing the value indications produced by the different approaches—or by different comparables within an approach—to arrive at a single, supported opinion of value. Reconciliation is a reasoned judgment of which evidence is most reliable; it is never a simple averaging of the figures.
Reconciliation in plain English
When an appraiser figures out what a property is worth, they often get several different value estimates using different methods or different comparable homes. Reconciliation is the final step where they think hard about which estimate to trust most and settle on ONE number. The key: it is NOT just adding the numbers and dividing to get an average — it's a judgment call about which evidence is strongest. It's like getting three friends' guesses on a used bike's price and then leaning toward the one friend who actually knows bikes, rather than blindly averaging all three.
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